Exercise $7-19($Algo$)$ Notes receivable; financial statement effects $[$LO$7-7]$

On June $30,2024,$ the Esquire Company sold some merchandise to a customer for $$48,000.$ In payment, Esquire agreed to accept a $9\%$ note requiring the payment of interest and principal on March $31,2025.$ The $9\%$ rate is appropriate in this situation.

Required:

Prepare journal entries to record the sale of merchandise $($omit any entry that might be required for the cost of the goods sold$),$ the December $31,2024$ interest accrual, and the March $31,2025$ collection.

If the December $31$ adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over$-$ or understated in $2024$ and $2025?$

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare journal entrles to record the sale of merchandise $($omit any entry that might be required for the cost of the goods sold$),$ the December $31,2024$ interest accrual, and the March $31,2025$ collection.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.

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Journal entry worksheet

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Record the sale of merchandise.

Note: Enter debits before credits.